Arik Hesseldahl

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Oracle Teams With NetSuite to Offer HR Apps to Midsize Businesses

zach_nelsonThe third piece of Oracle’s series of “startling” announcements on the cloud computing front came, as expected, from what’s occasionally known as CEO Larry Ellison’s “other company,” NetSuite, and the tech consulting firm Deloitte.

Oracle and NetSuite have teamed up to integrate Oracle’s human capital management and financial applications with the Enterprise Resource Management cloud application for which NetSuite is known. Given NetSuite’s speciality in reaching midsize companies, it should add to Oracle’s reach to have its HR and financial applications in a combined package. Deloitte’s role is to build a team of experts to help companies get the combined product deployed.

CEO Zach Nelson’s (pictured) basic mission from the start has been to deliver some of the same technology available to large enterprises to smaller and midrange companies. A key move this year has been to add HR and financial apps to the ERP suite, and he settled on Oracle. “When we added our requirements up, there was only one solution that made sense, and it was Oracle,” Nelson said on a conference call a few minutes ago.

While Salesforce gets a lot of attention as the largest cloud software company, NetSuite was the first. And this year its shares have been on a tear, up by more than 64 percent in the last year.

The plan, Oracle President Mark Hurd said on the same conference call, is to combine portions of the NetSuite and Oracle sales teams to approach customers together. “We’ll have a team that sells Oracle HCM into the NetSuite customer base, and which will work with NetSuite on new opportunities.”

And while NetSuite’s customers tend to be smaller than the ones that Oracle typically goes after, Hurd isn’t discounting the impact. NetSuite, he said, has some 16,000 customers, many of which take in less than $100 million in annual revenue, but there are a lot of them that take in more than $100 million, and many others that are international divisions of much bigger companies. “When we’re all done, we think this will be an exciting opportunity,” Hurd said.

Here’s the announcement:

Oracle, NetSuite, and Deloitte Announce Plans to Deliver Integrated HCM and ERP Cloud Services for Mid-size Customers

REDWOOD SHORES, Calif., SAN MATEO, Calif., and NEW YORK, New York – June 26, 2013

News Facts
· Oracle and NetSuite announced a strategic alliance focused on plans to deliver integrated HCM and ERP Cloud Services for mid-size customers.

· Deloitte plans to work with Oracle and NetSuite to develop a practice with highly skilled practitioners specializing in tools and implementation services to help customers adopt the soon to be integrated SaaS technologies faster and more seamlessly.

· Additionally, Oracle plans to develop a product integration and go-to-market strategy with NetSuite for Oracle HCM Cloud and NetSuite Cloud ERP to deliver a single, integrated solution that seamlessly connects HR and finance systems for mid-size customers.

Alliance to Create Competitive Advantage For Customers:
· Mid-size customers can gain a competitive advantage by quickly implementing SaaS solutions at a lower cost.
· Oracle HCM Cloud including Global HR and Talent Management, combines advanced technology, tight integration, best HR practices, and social capabilities. From recruiting and managing talent, to accurately forecasting future workforce needs, Oracle HCM Cloud enables companies to proactively manage HR operations while focused on strategic business initiatives.
· NetSuite Cloud ERP offers an integrated solution that connects a business across financials, sales, service, and fulfillment.
· For large organizations where Oracle HCM is already deployed, two-tier deployments of NetSuite in smaller subsidiaries will easily connect with its Corporate HR system.
· Deloitte has a business-driven HR approach, global reach, functional depth and SaaS experience to accelerate both the business value associated with HR and ERP transformations, as well as process and technology cost saving efficiencies.

Supporting Quotes
· “Driving the development and retention of the right talent, and getting strategic data around HR practices can help mid-size companies transform their business operations,” said Oracle President Mark Hurd. “NetSuite and Oracle are now working together to provide access to Oracle’s leading enterprise-level cloud-based HR & Talent Management solutions that are integrated with NetSuite’s Cloud ERP suite applications. With Deloitte implementing these integrated solutions, mid-size companies can quickly gain access to an incredible new level of HR management that can help impact their bottom line.”
· “We are excited to work with Oracle to bring customers an integrated solution that combines NetSuite’s solutions that automate business processes with Oracle’s suite for managing people processes,” said Zach Nelson, CEO of NetSuite. “Customers will benefit from the commonality of the products’ underlying Oracle-based architecture and the enormous investment in R&D and customer service that both companies bring to the table.”
· “Mid-sized companies are looking for solutions that allow them to be nimble and respond quickly to market opportunities,” said Jim Moffatt, CEO of Deloitte Consulting LLP. “This newly integrated solution will help these organizations deliver better service at a lower cost, ultimately giving them an edge in the war for talent and a true competitive edge.”

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